New Delhi, US IT firm Cognizant on Tuesday said it has signed an agreement to acquire digital engineering company Belcan, LLC for a purchase price of about US$1.3 billion (approximately Rs 10,861 crore).
The buyout includes US$1.19 billion in cash and 1.47 million confirmed Cognizant shares worth US$97 million based on Cognizant's closing share price on June 7, 2024.
Cincinnati-based Belcan is owned by private equity firm AE Industrial Partners.
Cognizant, through the acquisition, seeks to expand its reach into the approximately US$190 billion ER&D (engineering research and development) services industry and diversify into the aerospace, defence, space and maritime sectors.
A statement from the company said, "As a result of this transaction, Cognizant is expected to deliver more than USD 100 million in annual revenue synergy within three years, with additional cost synergy expected over time.,
The acquisition comes soon after Cognizant acquired American software firm ServiceNow's partner Thirdera in January 2024.
Belcan's business is expected to generate revenues of more than US$800 million for Cognizant on an annual basis in 2024.
As per the agreement, Belcan CEO Lance Kwasniewski will continue to lead the company, which will now operate as an operating unit of Cognizant.
Cognizant's CEO said, "Belkan's deep engineering capabilities and domain expertise in the aerospace and defense market will be complemented by Cognizant's scale and own multi-decade digital engineering expertise, providing Belkan's blue-chip client roster with our advanced AI. , will provide access to cloud and data technologies." Ravi Kumar S said.
Belcon is a global supplier of digital engineering services, serving a diverse customer base in the aerospace, defense, space, marine and industrial sectors, primarily in North America and the UK."Belcan's customers will have access to the full range of Cognizant's technology services, while Cognizant's customers in the manufacturing, automotive, energy and high-tech sectors will benefit from Belcan's engineering prowess," Kumar said.
New Jersey-based Cognizant is a Nasdaq-listed IT and outsourcing firm with a large base in India.
The buyout includes US$1.19 billion in cash and 1.47 million confirmed Cognizant shares worth US$97 million based on Cognizant's closing share price on June 7, 2024.
Cincinnati-based Belcan is owned by private equity firm AE Industrial Partners.
Cognizant, through the acquisition, seeks to expand its reach into the approximately US$190 billion ER&D (engineering research and development) services industry and diversify into the aerospace, defence, space and maritime sectors.
A statement from the company said, "As a result of this transaction, Cognizant is expected to deliver more than USD 100 million in annual revenue synergy within three years, with additional cost synergy expected over time.,
The acquisition comes soon after Cognizant acquired American software firm ServiceNow's partner Thirdera in January 2024.
Belcan's business is expected to generate revenues of more than US$800 million for Cognizant on an annual basis in 2024.
As per the agreement, Belcan CEO Lance Kwasniewski will continue to lead the company, which will now operate as an operating unit of Cognizant.
Cognizant's CEO said, "Belkan's deep engineering capabilities and domain expertise in the aerospace and defense market will be complemented by Cognizant's scale and own multi-decade digital engineering expertise, providing Belkan's blue-chip client roster with our advanced AI. , will provide access to cloud and data technologies." Ravi Kumar S said.
Belcon is a global supplier of digital engineering services, serving a diverse customer base in the aerospace, defense, space, marine and industrial sectors, primarily in North America and the UK."Belcan's customers will have access to the full range of Cognizant's technology services, while Cognizant's customers in the manufacturing, automotive, energy and high-tech sectors will benefit from Belcan's engineering prowess," Kumar said.
New Jersey-based Cognizant is a Nasdaq-listed IT and outsourcing firm with a large base in India.
